wife. "squawk box" begins right now. snoelts. live from new york where business never sleeps. this is kwauj baks. >> that didn't go out. >> good morning aerv pdy. s the rr hives to the thap hof fen if other foye. er and it was 3:00 in the morning. down by about ninety-four moints and that picture she she was and up by over 1%. it was up by about 3 kwartz of a

percent. they are slightly on the aught to. sited 3 this morning wdi is town boy another eight fooen potential $15 billion take over deal. the industrial called the neil a beamoy iaitthem blut a hot plates in the future. >> intell. >> if you're trying to transform

yourself, and woev rr not confirmed this then and then dead you see rour yoiser till reheel. starting to sound lierv a driver. >> but i think they'rall retdy tetsing andtle. >> it makes me furvs because i'm bored the idea of the kids getting my driver's licenses. will there be a town when we're talking about shoefl pepping kwur rr in thing the in thom

yourt where you sit right in the middle. >> can you imagine if they were getting you dressed. all got figured out in the jetsens. >> i want the made with the adjustments. who came in . >> i don't want to be in a helitaupter. i'm more concerned about collapsing fuping insid toem yoep's house. i don't remember rr goepes to stit in that havic. that's true. do you realize it's 5:00 amp in reality right now.

>> i'm he havely adjusting. from here it's a hasn't noitbuse we had the converse athd. time squkn are pup vinced you hadtop happened. but you're right. i said that to someone today. i ever lt ittime thirmnts is the second -- the announcement on interest rates due on wednesday, followed by chair janet yellen.

er for as for data, we get the considerer price index and thouzing we get thoetal starts, and opfriday frooel prodoukds. and just a few earnings reports. tomorrow we get volkswagen. atopy cyst mgs. trrs the whees economicads vker for are rrm rurk rg to reduce barriers to job creation. how many of you have to give something back i'm faten facie i to houp them though. >> president does live here occasionsally. >> to prepare for the potsability of road closures and

flight discorrupters. call for for 18er snowfall royce. it sglifrmntler and i we don't even have any foeper. t toptime it does not. >> woev arer been here in blizzards before and not a lot hand on the the street that's why i'm trying to figure out my skaejt. fom you got -- we got the kids coming. come on. a sleep over party. >> it would be kind of cool.

we have few down. air mattresses. we have a guest room. wie can to stuff. you have your own pictures on the wall. 19 years. remember? you may not want to say the rest of that in an eight-by-10 year about moy 19 years of ledge but ammon -- i'm not going to do it, amy. foreign minister i feel like it, i do it. if i dont, i don't. it's great. of course it's great. i would know. i've been airied through year said bp because you got that one year gap and my mother in law counted the months and everything to make shirr peach

fn thoniemg poafieptopsert it jm rr old-fashioned that way. >> to you wunt me to read this. "there was news mapging over the weekend. ch king fellederal prosecutors to resign obummau dlt dittant to it. but it excelo. are lot of precedent for the thoing this attorney before. they are presidential oappointments. the preppal felt he had a promise directly from november from the. that he would be allows to stay

on because highs office has been fairly interfpt. here's the time line as we fwrep to all of the 26 presidentally appointed u.s. attorney jelling them. . he had this deal in place. so the concushion lasted through saturday afternoon at foclks. that's when you have this rumer between mendy and fur upg ls imfiep tee ed d it if yuz just g asked to resign. and you issued this weet.

it it you were u.s. attorney. well forever be to the greatest tonner of my so cute. she said boy the way, enow the normant is company, people who love her. not clear what he because hat g hatingi pmg ethom thepg hays moum mopeple friendship. >> you know, obviously the new york pipers are going to bield haf thap prrs you know what, we love conjecture.

we're not going to shy away from it. fums ever if p and chuck. is chuck roads like a prefur arau inthat weps. kmucher episodes witch.time he's told gemotty. will jibe resign. in this case tebet a lot. a lot of hafrant lam bkzs. squr it's political in a sense that rirt clees to with leadership helper. we saw faum and faum frer itope

and maybe ea this has something to do the the fem you have to go to the moel white house do. and the question is where fleep. >> said in front of heme l tams utezarer trp animal definitely. and that was an iron dplied fiep rp to kpeepg teeltd see neal on sand. can. >> it could beads simple as.

kwaetsds if i were give. upper thereathist taeth i justtop it it it it it if you're in association with him, i'm done. >> because you guys are like ambassadorships. >> in my opinion, off the rails. i'm not withsing for harry rooetd to come back. idhe clearly had a hitdle it and does that infop pr stoem he stood up to the frup tad nip spration. and the trump administration, on

their side, had an invertive to 96ive hey fiefr him. atul tast ohop 40 tipping is just a changing of the fward. so so sosy you're fired. quote on kwoeld. those weren't rer efftok he to teamer for. second for tonight. flrs our former congresswoman is district afn it it tefor crerit was putt this wootle shomp the

door is ajar. do you believe that's what this was about? >> it's hard to know. you were there talking about. no one really knows the answer. sthienchlts have been to get trid all of frye. fact of the matter sis is the first time they have tried to rebhoouv yes flns attorney president friendship frrts from my point of view is that it appears the pd and hid wide thool krooet saying you're going to stay on. we 3rd from creek. and so this suggests that the president's kurd isn't really worth what it ought to be. frrs cl is to say i was loun at the time. they were on faendry hap and it

ittime squun who's completely independent and called the shots where they are. nv rr been highly refielded. little bit of a smupger. i tj tis t friepg. thtser what -- joens and then turn around it jrmnt sometime

said they keem people there over time. yeah, patrick pix chartd was arv beap. fo are more and in between. just atrapt yer epifennel.

thats trr f squb ktd have beenen ongoing investigation. this is a bit. he promised a imfaem papeper partnership taso trump, as far as personal relationships, he can be very adducivadducive. and then someone gets his ear, bam. ear something like that. it's not that infrrt to fwig kwhar ouds put quasi-fumcome emat a hiem. time well, he lives in werp

kaush. but iticallythry he was just foeg after those epiaen. kwlo if there was foom people thought he was a straight shooter. maybe he took a little toorpt sorry it was a straight shooter. ? tooim praum frock froms not tafoot in foreign minister ir. and tingsricate attorney. not the first time wooev rr seen a flashy person in that position woosz rr taken a little bipperty. i feel foyerful in this position

and it dets the tone for it country to be fraums president trump. one of your it it it nmer this a thaeng foreign minister and said we were looking at fox nusz friendship of the fames. and hoot tu. fep. it it that i'm so confused.

which way am i foeing to go this year. we have everything you need to know to fell out your prakst and that's next. flrs blrn what you need. ♪ more than 24 thousand companies run their business in the oracle cloud. delectinging the piggest ate fep is from trothm nangsal planning and then accounth snmnt saly

went to sleep after this party and

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the ncaa men's tournament bracket is set with games taking off tomorrow and wednesday. yoin us for a classic break down the editor and chief of sports nation. and maybe ea it's just me but everybody's gotten beat by someone that shouldn't have been able to defeat them. moel him to hap pim theen inone seed pch and this buch a couple of days ago. is it tee if owe it it it i'm going to go smoke or eat. they were undefeated coming into the friepon forten prm fwr

squutigate faep atault saint mary's from i always look to say that as a home owner. smu, they looked forable. i don't know if i can pick since nal fatty, even in the first frirnltsfirm prp.b ar it till foevau is a team that can't make the. i think a lot of people kwlig frrd they'd jump down to a two seat after yak won. and they really stuck to fauntd fang commiten to my tad. well, then tark hoar and was a

four seed on wednesday. it was a biggest jump any team made within thebreakt. but not enough to get them a run. >> wie wie is current relationship rb they're high walk down hoffense. everybody's talking about that as the glam prakt. and you have ucla. not arv pdy. >> the pack -- >> how about arizona? >> they're a great two seat to bet on. the rest of the teams have been erratic and they lost lost the

hair shotberinger. you don't know. >> don't take any 15s and 16s. no 18 because it's a had a wonderfuler t sfint it it it tofr opthois framnt rmnt fap pape tame foreign minister heirmerper and tlart why i'm so kpun fused president trump tis point. and that's what is going to happen this year. >> that connecticut year they finished 9th and came back aporting performances. wut i can't raw. frar. in the type are you going to push the button for real this

year? >> no. i'm going to pretend like i know what i'm doing. cincinnati. if you come out cold like yesterday. it was like 16 to 2:00. i feel like i could have made it. turous chas it at 10chuck this friendship. had f hadfer to play together for at least your fp. ter j you have a twaevl photofent j are trl gauze you just said that. i don't have nothing else. the slightest tip i'm ready because i hate picking someone and watching an upset and saying

i could have had it. ither him tos they don't mop up. they're taking on lan lan vase in ord labtdo. guys from a flaemes for frp. so it's really hard to break them. >> thank you. >> no problem. you have your] t all filled up? >> i have three different brackets. >> wed the mention cnbc universal does have investment in the parent spf tell. and turn the. ittime winners and losers. frrsz kwiek is baks in a moment. ♪ finally.

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♪ good morning. check out u.s. equity futures at this hour. quiet, still quied. down six on the dou and the s&p. >> a get out deal frrt of our

website. urous said this rrgist. specializes now see the remembers that i forgot i hitd your tit hpporous the federal reserve is pietdly expect tootd race. erse frets faup file etog if capable of a a mieb ap. if tom roamy to stop this happening. >> so if we're focussed on the

next rate hike. what doyou think sn dwreen. pleerp friendship that frel focus twoe foreign minister. prr friendship. torm and at that point, marcus going to start really hard about getting four bikes next fear. and i think we're going to get four fop i think fremer. hor hereupon kwp j it stowell,

that's -- and we could have a real indegestion in the markets. for now everyone is relaxed and in strides. >> when we gautd good nobs friday, the market rallied around the strong number, even though we knew it would lead to oo definite rate hike. people saying what about every other month. and people starting to build a little concern about that monopoly when tuz it become and really agreasive with the mom.er for i think rrtser a question whether her the emfliemd reports from physical prp asit hper. hoe it it tom what are inflation.

so that leaves open the possibility the fed could pass in john. and bruce, what are your expegditions for shocks. govern you tell me to continue to invest. time of 16. tom frk all now the young term friends. >> let's tong about some of the structural trachgs in our economy. thaep there are mebopy you look at things likole price forson and time forer if foreign

minister coming back on. and nedded. him the kpk. >> how do you add all that up when you ficcier out where the edaneomyest tem been. tin thirs kwing and staen wu wusz fapical is a puzy had l what we saw is a clear down shift in gdp growth and so the lay market continue to fighten dp that's what the fetd is focussed on. when you hear had press cons fr conferences. it's the net john gesalgd. and the freeld was different than tone or 15 years ago what does this do to the unemployment rate? which is more or less all i care about. it's present falling to a too

far. it's not as leap as it waug. trr and the frierng teal er and we've got to get ahead of the game. she wants to remain ahead of the curve. so we've reached a real inflection point. >> what's your favorite area in the markets? >> i think those are associated with the business cycle. so it would include the business cycles, but not barbecue sauce and such. sglnk you for having you. >> our fest woes is going to be co pounder leave. then the republican plan to over hale health care. fractsed medicine for over a beck ooid before he entered fum

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as developer, i've been through the hard times. >> $250,000. meet me and $60. it's your house, my money. there must be a disconnect. it was invulting. yifrts hoout jest about the deal. frirts buts the real to. er for ♪ welcome back to "squawk box" in news out of europe, the brexit bill will be voted on in both houses of parliament this evening. if passed, they could trigger article 50 as early as tomorrow and it's afternoon already.

rer closer. funny the way that works but there's a talk that nikola sturjen about to call for skutish referendum. they only ones

>> let's talk about the big five insurers, united, aetna, anthem and cigna. how do those five break out? many of them have said they are out of the business of writing this for obamacare patients anyway. >> you're totally right. i'm advising clients, hiding out in the big five is a good way to play this, not have concern. we have fundamentals for stand alone. they really don't have much exposure to the aca. most are out of the marketplace. even though anthem, united, aetna have very large medicaid businesses inside of those large companies we see less than 2% earnings risk associated with

losing the medicaid coverage. of the big five only anthem has a material presence in the individual market where people are receiving subsidized coverage and they can lose that. we think changes in the bill drive more adverse selection in the marketplace. anthem certainly exposed losing more money underwriting that market. their guidance is we're going to break even. we think adverse selection the market would become worse. enforcers and people more bullish on anthem say if that happens we'll exit and the market shouldn't capitalize losses. to be fair, that's a good point. >> if anthem sounds like least favorite of those five, do you have a favorite pick of those. >> sure. anthem least favorite. one company in the big five we're not recommending. aetna is big favorite. not particularly imaginative but cheapest on pe basis. quite frankly after the humana deal broke, aetna suffering from

identity crisis where the market doesn't understand what is their strategy, how do they grow. we think they are still solid underlying growth avenue for aetna in the government marketplace, in their ma and medicare vantage business growing nicely and with capital deployment we see that as long-term 10% growth story. >> gary, just to put a fine point on this. you say the odds are long but you still think 50/50 shot this bill goes through. you think the market is not anticipating that. any time the market happens they are not expecting there's an opportunity. what would be the opportunity be? would it be to short the hospital stocks? >> at jpmorgan i'm not allowed to recommend shorts. i would certainly say this. i'm advising clients we're not chasing the hospital stocks. we're not chasing the medicaid hmos as they have rallied on the news. in fact, if the cbo report comes out today as i'm anticipating, as it says, 15 million lose coverage, $200 billion cost over

the next decade, we think counter-intuitively on such a terrible score you're going to see hospitals and hmos rally. the market is going to say that's the nail in the coffin. there's no way this deal can get done. at the very least i'd be suggesting to client not to chase the movement higher in those stocks. >> thanks. gary, thanks for your time today. great talking to you. >> thanks for having me. >> president trump firing 46 prosecutors. i don't know if that's exactly right. most of them resigned. i guess that's considered fired. >> after being asked. >> after being asked for resignation. talk to former prosecutor anne-marie mcavoy. rest of the show home depot ken langone comes out of his shell. we're going to try and do that.

wall street's top cop fired. u.s. attorney preet bharara gets the boot after refusing to step down. the latest details and tweets. >> all that plus ed sheeran is coming. we're going to tell you how the pop singer land add cameo on "game of thrones" as the second hour of "squawk box" begins right now. >> announcer: live from the beating heart of business, new york city, this is "squawk box." good morning, welcome back to "squawk box" right here on cnbc. we're live at the nasdaq market site in times square.

i'm andrew ross sorkin with joe kernen and becky quick. our guest this morning, are you going to come ut of your shell. >> a lot more from him in just a moment giving us thumbs-up. taking a quick look at the futures. this morning we're going to show you, dow looks like it opens down 12 points, s&p 500, 2 points and dow a little over 5 points. >> among today's top stories, shells surging, israeli website announcing the deal to buy the autonomous technology for $10 billion. a report says the transaction will be announced sometime today. as a result mobileeye shares are up 34%. yahoo! unveiled details about its management team after the sale of internet assets to verizon. board member thomas mcinerney chief executive office. alexi wellman, ceo, currently

vice president of finance. after the acquisition will be known as al tabbaa be trade under symbol aaba. las vegas gambler billy walters accused of insider trading allegedly making $40 million in trading in shares of dean foods. this is the case that drew attention because of connection to golfer phil mickelson. not accused of wrongdoing but degree to pay back a million dollars from trading dean foods on a recommendation from walters. top prosecutor preet bharara fired over the weekend after refusing to resign. leslie joins us now. good morning. what can you tell us? >> hey, guys. he took on political corruption and terrorism but one of his most enduring regular sis is what he's done for insider trading. since october 2009 bharara filed 111 charges against insider

trading, 89 of those resulted in convictions. a success of about 80%. among bharara's high-profile cases included the longest sentence for insider trading as well as sac capital the hedge fund run by steve cohen forced to pay a record $1.2 billion penalty. now, in 2014 the court rewrote insider trading, the playbook for dealing with ipser trading, which delta blow to bharara's office and overturned several of his convictions. but in december, the most recent december, a supreme court decision melted the chill over insider trading cases and bharara and to be back in busine business. now in interim top deputy will serve in the role until the president names an official successor. sources close to defense side of insider trading say they may postpone settlements to wait for the new successor to come into

play with the hope they will receive a much more friendly settlement in that case, guys. >> leslie, thank you very much. we appreciate it. let's talk some more about the firing of preet bharara. joining us former prosecutor anne-marie mcavoy. what should we make of this? in our administrations they have been asked to resign or stay on. what do you make of this? >> it's pretty typical. although unusual everything that's happened the last couple of months has been unusual with the new administration to some extent. so we have -- everybody has to submit their resignations. preet bharara refused. that in and of itself was unusual. especially after november trump apparently told him he could stay on. so a little bit of confusion as far as how it comes across but not really surprising.

when you look at the last few months, there have been a lot of changes in the atmosphere. i think that probably the president thought things would go a little more smoothly with chuck schumer. he's gotten pushback on just about everything. chuck schumer not only put preet bharara spoke office as u.s. attorney but also had him as his chief counsel for a long time. there as very, very close relationship there. given the animosity that's really developed between trump and schumer, it's not a surprise that trump would want preet bharara out at this point. >> why do you think preet bharara would say i'm not going to hand in my resignation. >> he's getting a lot of publicity. if he had gone quiet and submitted his resignation we probably wouldn't be talking about him. he's somebody there's rumors he might run for governor. he might run for mayor of new york. he's pretty well-known. again, most of the talk about

him is very positive. so it's a win-win for preet to kind of put himself in play like this. >> get the play along with it. ken langone is here. what do you think, ken? >> i think he did a fabulous garage. anne-marie and i -- absolutely fabulous job. i understand the dynamics of schumer. that's for another discussion. wouldn't it be wonderful this maybe ran for governor or ran for mayor. he would be spectacular in either job. so everything happens for the best. i believe that. i think now that he doesn't have this job anymore or won't have this job anymore, suit him up and bring him on because we need people like this in public service. >> you think he's independent minded? >> i think he's independent minded. i don't want to beat up on a dead horse. what i was telling annmarie, how i went to see silver about charter schools in new york

sta state. he had no interest in what i had to say. not about the kids but teachers, dues, contributions for politicians. look, these kids need help badly. i see a guy like this. is he aggressive, is he -- say all the bad things you want to say about him, he did a hell of a job. the more people we can bring in public service like this, the better the country is going to be. >> can i ask this, true narratives around preet bharara, one is exactly what you just said -- maybe three narratives. there was another if you remember after 2009, '10, '11 where people said he wasn't aggressive enough when it came to wall street in terms of going after the wall street banks, if you remember that. then there was another narrative, which was that he was a publicity hungry overreacher when it came to the hedge fund managers. so how do you square all three different versions of this. >> wait a minute. so he's an overreacher. so he's all those things you want to call him.

he did a hell of a job. who doesn't have flaws. maybe not me, at least that's what my wife tells me. only kidding. >> he did go after both sides. i think certainly in the legal community, anybody who would talk about preet bharara would say he did a fabulous job and that he was fearless, he was strong, he was willing to take on difficult cases. he was welling to put himself out there. he went after both sides, which was important, which made people feel better about what he was doing. he went after both sides. across the board people would say he did a fabulous job. >> what are the implications to the cases up next, the cases still on the docket. we talked about the potential. >> blah blah blah. >> de blasio, fox case that may or may not exist. >> the cases will continue. and one of the things that i think that the press isn't

really realizing is that there is often a lot of turnover in u.s. attorneys office. there are often multiple u.s. assistant attorneys who are most of the time working on these cases day in and day out. and cases have different people work on them and they continue. so the case actually usually survives whoever is in charge. the difference, of course, there is something called prosecutorial discretion. that's when it makes a difference. talking about de blasio, u.s. attorney will be involved in those decisions. whatever position he or she may have with the issues involved and what is appropriate could affect whether an investigation continues or what the outcome of a particular investigation may be. so that's where the difference will be. right now it will continue as is. >> fair to say conspiracy theories if something is not followed up on, dropped, charges

aren't brought, that's what we'll continue to hear about for a while. >> sure. part of it, too, preet was a very, very good u.s. attorney. i don't know who is going to be appointed. >> do they have any names? >> i don't know right now. they have an acting u.s. attorney who was second in command, who i assume would be very familiar with everything going on in the office. right now i would say it's pretty seamless the transition. eventually somebody else will be brought in and they will be brought up to speed very quickly. cases are generally assigned to somebody at a lower level anyway to actually deal with the day to day. >> annemarie, thank you for joining us. >> coming up talk strategy. one of three senators tom coburn released a blueprint for replacing obamacare three years ago. you're watching "squawk box" right here on cnbc.

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welcome back to "squawk box," everybody. we've been watching futures this morning. let's take a look right now. things looking around flat line. down a little bit, 13 points for dow futures. dow was down last week. it was a rare down week over the last several months. s&p futures down by 2 points

this morning, nasdaq down by 6 1/2. jim paulson chief strategist. good to see you this morning. >> good to be here, becky. >> what do you think we'll see this week. fed largely deciding to raise rates. does that matter for the markets at this point? >> we're kind of in a unique situation historically, a hugely positive correlation going on for recent years between changes in the stock market and changes in bond yields. if you go back to 1900 and look at all the months over that period of time, we've been running at some of the highest quintile correlations over that 110 year period. what that says, more times than not when rates go up, the stock market has gone up. i think we're still in that mode. it reflects looking at yields,

less is a threat to stock market that inflation is rising, more evidence that the economy is getting better and farther away from deflation. i think that's how we're seeing this wednesday rate hike. normalization of monetary policy is actually building confidence among stock investors rather than what it would have done in 1970s or '80s or '90s when it would have created fear inflation is getting out of control and stocks would be under pressure. i actually think the market is going to be fine with this rate hike. i still think we're doing to see higher stock market and higher bond yields before this thing peaks out, maybe later this year. >> before this thing peaks out later this year. you mean the stock market rally peaks out later this year? >> i think it's possible, becky. what i'm watching for is when does the market's attitude, investor's attitude, shift from rising rates and rising inflation as a good thing

suggesting the economy is getting better to it turns back to it's a bad thing, the fed gets behind the curve, bond vigilantes get agitated and higher rates start to bite the stock market. i think that might happen later this year. >> what are you talking about? we're at zero. >> how far between now and then. would you tell people not to get in or a lot of room to run. >> a lot of run. saying this for years. >> i think -- i think that a lot of markets peak out around 20 times earnings. this is just guesswork but i do think we're going to hit street estimates around $130 share earnings. i think the market moves suggest that earnings are going to come through. if that's the case, maybe this thing could run to 20 times, 130 times, $130. >> which gets us to where on the s&p. >> 2600. >> around that level.

maybe ten-year yield backs up higher than people think, 3 1/4, 3 1/2. >> jim, they could raise rates every meeting for the next 20 meetings and we'd be back to 4%. we've been in this deflationary where everybody is worried around the globe and no inflation in japan for 20 years. we could be filling this up for the next three or four years trying to get some actual inflation. how could it happen by the end of this year? i think you're nuts. >> joe, joe, i'm not suggesting the bull market ends this year. >> i'm just talking about interest rates and inflation getting to the point where they would be worrisome. we've been down here for so long. >> we have lived -- >> here is somewhat my concern about what could happen on the inflation fear. we've got a lot of inflation indicators right on the cusp. core inflation if it rises by .1 will go to the highest level of

recovery. a quarter% breaking back 2%. wages, i think, are very likely to go for 3% this year. if all those happen at the same time, i think that could create a lot more attention about inflation breaking out to new highs for the recovery. >> let's get away from the market. let's talk about the economy. we've lived on free money. >> that's great. >> for what, almost 10 years. free money. now, it seems to me the only downside to higher rates is the impact it's going to have on the federal budget and federal defic deficit, because they are going to go up. when you think about the pain that people who depend on fixed incomes, social security people, pensions, we need higher rates. it's unrealistic. it didn't work. we have at best right now a tepid economy. what do we have last seven or eight years, 3% gdp growth. so this to me is a nonstarter.

i think when we begin to normalize, what you're talking about, when we begin to normalize where rates should be, i think then we've got a chance to look at this picture and say now what do we do to get it going. right now you think about, take a state like illinois where there are pensions. what are you going to do with deficits in that pension if they continue to have terribly low income. i'm arguing for higher rates because i would be impacted because exceptionally my exposure investments is equity. i think over the long-term i'm better served by higher rates. which is what you said, jim, i thought. >> i'm just going to say i don't disagree with a lot of what you're saying. i would say this, though, one of the great things happening right now around the economy, not so much growing faster, it's broadening out. it's reaching more corners of the globe than we've ever had

simultaneously. the citigroup economic surprise indexes at record highs for the recovery showing a broad global force here at play. but more importantly in the united states, this recovery has finally reached main street in middle america for the first time. real median incomes have shot up in 2015. they give every indication they are going to go up in '16. real wages going up. we're at full employment. we've got broader participation in this country than we've ever had. i think that's adding to the optimism and animal spirits you're starting to see emerge. i'm pretty positive on the economy. i'm just worried at some point the good news turns to bad news for stocks. >> you should be happy. we've got to say good-bye to you. >> you should be happy. >> you should be happy. if you had your way, bernie sanders would be president, all right, so just be glad things are happening the way they are. stop looking at it with a gimlet eye or whatever it's called, paulsen. thank god you only had one vote.

>> he's late for a picket line. >> he is. >> very quickly, do you think 26 rally just to be clear. >> just kidding. >> i'm not. >> you think 2600 s&p before the rally dies out just to be clear? >> that's just my guess, becky. i think bond yields back up a whole other percentage points and then we have maybe a pause. >> did you vote in the primary in minnesota? did you vote for bernie? >> i don't have to disclose my political preferences. >> he does not have to. >> he does not have to. >> but you're not denying it either. it's a nondenial. >> we do not have to disclose our preferences. it's a free country. >> andrew told me the day before election day who he was voting for. >> shocking. >> it's okay, look -- >> i can tell you, joe, go gophers number five seed. >> i've seen them.

watched the wisconsin game for a little while. i can't remember who won that game. >> wisconsin won that one. that's history. >> see you later, see, he's turning all red. he should be red. anyway, thanks. >> he didn't vote for -- i don't think he was a sanders guy. sorkin was. >> he's had too much of a taste of the good life to vote for sanders. more than most. >> compartmentalize. >> you can continue talking about me during commerce break. >> health care in america to talk about when we return former senator tom coburn is going to react to gop's health care plan. you are watching "squawk box" on cnbc. of course, mr. langone will be with us when we return. ur dream. at vicarious visions, i get to be creative, work with awesome people, and we get to make great games. ( ♪ ) what i like about the area, feels like everybody knows each other.

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welcome back to "squawk box." a little breaking news for you. we have an update on a potential deal this morning. shares of mobileeye halted after an israeli news website called the chipmaker intel will buy them for $15 billion. the deal will be announced today. we will monitor that. >> when we come by, stop

stories. don't miss kevin mccarthy. he will join us on set. when we come back we'll talk to ken langone about border tax. as founder of home depot, hear what he says when we come back. yes?

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♪ ♪ ♪ just another manic monday wish it was sunday that's my fun day ♪ >> good morning, everybody. welcome back to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. among the stories front and center, gasoline prices up $0.02 a gallon past two weeks. nbc analyst says now $2.35, $0.51 above where it was a year ago. moody's says united states will retain its aaa credit rating despite possible return to the federal debt ceiling as long as it makes its interest payments. lawmakers suspended the ceiling in 2015. that suspension would end wednesday if it's not extended. moody's industrial writes aaa, downgraded to aa plus in august

2011. kong skull island number one, well above estimates. warner brothers movie was an expensive one. it costs $185 million to produce and will need a good overseas showing as well. >> still irritates me. >> what? >> s&p. >> thought you were saying king kong. >> that irritates me, too. how many kong movies can you make? >> i think there's been about seven or eight. >> they keep finding that big ape. they have gotten bher and better making him do cool things, making him look human. a tough way, ken, on this trig to make you look more human. >> quickly before we go to ken, the intel-mobileeye deal is happening. it halted on the news it would be bought by intel. that deal is, in fact,

happening, mobileeye shares up and intel. >> this could transform intel if you think about it. i know in the short-term it probably doesn't but you think about the idea of them getting spot automobile business, seems like anybody could be buying mobileeye, anybody. >> i appreciate that. ultimately they are going to be one of the technology players behind autonomous vehicles in the future, whether it's trucks. >> you must know more about it. is mobileye the one? >> mobileye is the key to a lot of this. everybody trying to create their own technology but mobileye is one of the top players out there. >> get back to guest host ken langone, co-founder of home depot. it's a retailer.

retailers are scared to death. a lot of different ways of saying that. scared to death of the border adjustment tax. we're going to -- i hope we built a full screen of what stan said. >> right. >> i've always said that. not that truckenmiller is end all be all. the house tax plan as presently conceived would represent the most promising fundamental reform in decades. it addresses both our overlying consumption versus investment as well as leveling the playing field with our major trading partners. it simplifies and proddens the tax. it encourages production versus financial engineering, discourages moving production overseas while one piece of a larger puzzle, the border adjustment tax essential, a tragic lost opportunity if the

bill is carved up or not passed. you're a retail and you want it, too. >> i'm going to give you a statistic, and i can't prove it. bernie is for it. >> bernie marcus. >> i'm not going to tell you what my net worth is. but i think if you took bernie's and my investment in home depot, it would probably add up to more than the total investment of all the ceos of all the other major retailers. so i would say we have some skin in the game. now, there are people out there that may say this guy is nuts, in which case he's saying this because he's wacky. the fact of the matter is, i can't be more excited about a border tax. let me tell you why. mccarthy is coming on? >> yeah. >> okay. republicans, democrats, the media, everybody was against trump. the american people elected him president in my mind for one reason, they don't want

incremental change, they want major change. he took down three dynasties, the clintons, the bushes and the obamas. this is a tsunami. if you guys don't like being in the majority in the house or the senate, then you make sure we don't get these dramatic things done. we're going to go right back to where we were. there's a strong argument for term limits. this makes the point. now, what's the most important thing to a retailer in my mind? sales. if you don't have sales, you haven't got a business. to home depot, we had two goals in mind when we started and we stuck to it, the most important people are customers and our associates. anything we can do to make it better for our associates and for our customers is good for us. we proved it. i'm not bragging, and i don't want to jinx us, but here we are

in a period of time where retailers are wringing their hands and struggling, you saw our numbers last quarter. now, we've got a fabulous management team. a border tax if we have the long point of view will be a phenomenal engine for growth in america, big time. now, while we're at it, though, let's be honest. we've got to look hard at corporate welfare. i know how stan feels, and i share it with him, the interest should be taxed. they wouldn't have that if they didn't earn it. i know whatever i earned in my business is ordinary income. so let's put it all on the table and say, guys, we're going to change the setting. ronald reagan defined his presidency with i call it this is the republican party's air controller moment. in 1981, reagan said, guys, hear

me out. you walk out, you're out. oh, my god, the planes are going to crash, not going to be able -- go back and read the same newspapers that write this crap today. no hard feelings, adam. here we are with a moment in time and an opportunity. the american people have said to us, the republican party, okay, guys, here is your chance. the border tax will work. puts more money in -- by the way, a tax cut, the first people that should be fed and taken care of -- no, i don't mean this pejoratively, the little people. the cafeteria workers, the people that work at home depot, the people that work at taco bell, those people. they should be first at the table. then we should say to ourselves, all right, who pays the highest tax rate of any industry collectively. retail. 37%. why?

i think somebody told me last week that the average corporate rate is 8 or 9%. i don't know if it is or not. but you look at a retailer -- >> you don't have fancy maneuverings. >> we mark it up, pay our wages, pay our rent and what's left is ours. here we have an opportunity. that's one thing. the other thing is the currency. i think you're going to have to be smart how you do it. for example, by the way, i don't know where home depot stands on this issue as a company. i'm not going to go there. i do know -- i do know craig was not in washington with all the retailers. i don't know if that's a signal or not. >> i'm just confused. how much of the product that's at home depot. >> about 20%. >> is imported. >> about 20%. i asked for that. it's a guess. okay? >> how does that differ, for example, from walmart, do you know? >> i don't know. but look, look, say you've got a

period of time to adjust your contract, so, for example, if we're buying from china, the new contract will say we pay in yuans. >> let me brag on drucken miller, never had a losing year. i don't want to call him a genius, he'll get the big head. he's smart. i buy into his notion and larry lindsey's notion, i agree wit, the dollar will go up if you pay in the foreign currency, you get the play on the currency on top of that. >> said the same thing, david tepper. >> gradually. but he didn't say the part about paying in the local currency, which makes that -- do you have time to change -- >> but china's manufacturer wants to sell home depot. the merchant sits down and says

by the way from this day on we're paying in your currency. he doesn't accept it, he hasn't got the business. the biggest thing of all. the job opportunities in america are staggering. if i have a moment i'll give you an example. there's a little town called paris, tennessee, in the northwest corner of tennessee. emerson electric had a plant there, 900 people. they were manufacturing all the power towels for sears, roebuck. they got a call one day, you're done, we're going to china. chuck knight called bernie. bernie and i flew out we made a deal. we'll move a lot of our private label stuff up. part of that deal we got rigid brand, a powerful brand in home depot only. we saved 900 jobs. they had balloons. i got a bat in my office, a baseball bat. the point is you bring jobs back to these little towns because

that's where you can build a sowing plant. this is nuts. >> all right. we are going to continue this conversation with ken langone. i have a million questions and i know everyone else does. we have news, intel announcing it will buy mobileye. big announcement, john joins us to break it down. put it in context for us. >> good morning, andrew. this is a big deal, first of all, for intel. it's about $15 billion, it looks like, to put that in perspective. this mega deal that intel did a couple years back for just shy of $17 billion. so this is huge. this is brian, relatively new ceo of intel continuing to make his mark in the post pc era. mobileye is all about computer vision. right now we associate it with driverless cars, being able to

understand what's on the road, eliminating blind spots, collision avoidance. basically the computer being able to seamlessly interact with the physical world with minimal human intervention. that's not what pcs are about. pcs are about keyboards and mice and humans ability to interact with the digital world. this is flipping on its head. qualcomm buying nxp, also an auto related company but not so much about vision of the road but more about basic operations and digitization of the car. this is silicon valley pushing further into the world that's about augmented reality. becoming more tightly integrated into the world in the era beyond pc and even beyond the smartphone. >> big price. does the price tag make sense to you? >> well, i mean, you can call it a huge price.

it's less than facebook paid for whatsapp. depends how big you believe this opportunity is. intel doesn't have the greatest track record on acquisitions but particularly when they are in the consumer space. this is not in the consumer space. it's very much along the lines again of qualco qualcomm -- >> jon, explain this to us because we were talking about it earlier, mobileye has this technology. who else does and where do they rank? where do you put them relative to whoever else is out there. >> mobileye is way in the front of this type of technology i would say. you look at some of the brands that they partner with in cars. they include cadillac, bmw, i think volvo is another brand who they are partnered with. so there are several other names in autonomous and right off the top of my head right now i'm going to mess them up so i'd

rather avoid that since i'm speaking off the top of my head. mobileye is this israeli company, just had them on for ces, one of the co-founders on from ces talking about this. they are in the forefront of this technology. they were actually speaking about tesla, because you recall there was controversy around the use of mobileye using technology as well as they should have been to see the road. this technology is applicable beyond just cars, i should mention, to drones. brian has been talking about the potential value of drones, acting as a person. part of that computer vision. think of this as not being purp applicable to cars but all these situations where you might want computer or digital intelligence to recognize what's happening in the world and then react on its

own. >> jon, thank you for that. fair enough. a little definition, lidar is a little thing that looks like a siren, has a bump on the top of the car but really is a laser. >> self-driving drones. let's skip to self-driving cars, right to self-driving drones. >> no tunnels. no tunnels, no traffic. >> coming up former senator tom coburn weigh in on gop's health care plan. we'll talk with him in just a moment. energy is amazing. how we use it is only limited by our imagination.

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. welcome back to "squawk box," republican health care plan backed by president trump continuing to make its way through congress but republican house leadership pressing conservatives to get on board with the obamacare replacement. joining us former u.s. senator tom coburn, senior institute fellow. are you on board, sir? >> with part of it, sure. but look, there's a fatal flaw in this if you actually want to lower prices. there's no market in the world where you can have efficiency unless you have price discovery. and by not forcing -- i've already talked to parliamentarian and senate, you can put price discovery in this

bill and not have it thrown out object the byrd rule. so who doesn't want price discovery, the insurance company and hospitals. if you're going by the market, you ought to know what things cost, look at the differences in prices and you ought to be able to see quality outcomes. no matter what they do, without that you're never going to lower the cost of health care in this country. >> what do you think the chances are that there are shifts in the actual bill that are more in line with your thinking? >> i don't know. i'm not a lobbyist up there. i haven't tried to change it. but my observation, i've said this for the 10 years i was in the senate and six i was in the house, as former practicing physician and part of outpatient surgery center, price discovery is what matters because people will shop it, and they will find it. i can buy, if i want to shop it, in tulsa, oklahoma, i can buy an

mri for $250 versus -- >> get the numbers from cbo on what this means and how they will score it. the expectation is the headline coming out of it, we could hear 15 million people will lose their health care, a number of surrogates and others from the administration came on the air over the weekend talking about those numbers and how maybe we shouldn't think about those numbers. how do you think about those numbers? >> well, first of all, that's between now and 2020. that's four years from now. that's at the end of fiscal year 2020. most of that is whatever happens in medicaid. it's not about what happens in real market, not what happens in the insurance market. if they do this right, if you are a smart governor, what you would want to do is put personal responsibility often medicaid patients by creating medical savings accounts. senator burr, senator hatch and fred upton have a good bill.

i'm not really bent over bad on the tax credits, because what we're doing is equalizing tax treatment for individuals like we do businesses. so i don't think that's a problem. but i would like to see them clean it off and have something. what they are wrestling this is they don't have enough votes in the senate. so what paul ryan says, 99% of it is accurate. you've got to send a bill that cannot be byrd ruled through the senate. >> dr. coburn, how are you today? >> i'm fine, ken, how are you? >> i'm well, thank you. question, unrelated to everything we're talking about this morning with health care, isn't this a moment in time where we ought to begin to consider some form of review at least and hopefully implementation of something to do with tort reform? because when you speak about health care cost, think of the enormity of the liabilities that all of us, and i'm peripherally involved in the health care

industry, but think about the risk to all of us and doing our best, which doesn't always come out to be the best, not because i haven't tried, it's because we're dealing with humanity and we're dealing with variables. it seems to me that while we have everything on the table right now, why wouldn't we also address the issue of tort reform certainly as it relates to the health care industry? >> great question except our founders wouldn't agree with you. the fact is as tort should be controlled by the states. oklahoma totally reformed their tort system. guess what, malpractice rates are half of what they used to be. >> bingo. >> same thing in texas. the point i'm making, ken, is we have too much big government now. >> i agree. >> we don't need the government involved in tort at the state level. that's a state function. if states want to have a stupid tort system where it raises the cost of health care, let them do it, but they are not going to. they are doing to eventually get

smart and say we're going to cut this down. >> doctor, real quick before we go, given your experience in washington and with the health care system, if you're handicapping whether there will be something, in fact, that does get passed, you think something does happen? >> yeah. they can't afford not to have something happen. they made a promise to the american public. they are going to have to do it and have to figure out the compromises, which is what the senate is all about. you're not seeing one side play now. but what there has to be is compromise. people have to move. so you can't stake out this is the only way you can do it because you're not going to get it done. >> okay. doctor, we appreciate your time this morning. >> you bet. good to see you guys. >> nice talking to you, doctor. >> good talking to you, ken. >> when we rush we'll have much more from guest host today ken langone. 8:00 p.m. eastern time house leader kevin mccarthy will join us on set. "squawk box" will be right back. ? a basketball costs $14.

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♪ ♪ all right. welcome back to "squawk box." boeing downgraded equal to overweight, bogey up 40% since mid 2016 and earnings potential largely unchanged. i.t. consultant higher, upgraded to top pick from outperform at

rbc capital based on potential for january acquisition of technology consulting firm ceb. a big hour ahead on "squawk box." when we come back, house majority leader kevin mccarthy will join us on set, have a busy week on capitol hill. plus more from guest host ken lank langone. you're watching "squawk box" on cnbc. ♪ ♪ the greatest population shift in human history is happening before our eyes. sixty to seventy million people are moving to cities every year. at pgim we help investors see the implications of long term megatrends like the prime time of urban expansion, pinpointing opportunities to capture alpha in real estate, infrastructure and emerging markets. partner with pgim the global investment management businesses of prudential.

"squawk box" is in session. health care, taxes, the budget. we'll call this hour to order with the house majority leader kevin mccarthy joins us ahead. the sheriff of wall street no more. preet bharara fired after refusing to resign. the full story coming up. plus bracing for potential blizzard. getting worse. the final hour of "squawk box" begins now ♪ >> live from the most powerful city in the world, new york, this is "squawk box." >> make me so happy.

>> good morning and welcome to "squawk box" on cnbc live from nasdaq market site times square i'm joe kernen with becky quick and andrew ross sorkin. our wonderful guest host this morning, so generous, such a good man, ken langone, cares about his friend. does a lot of things for him. >> thank you. >> futures right now are indicated a little lower last we looked. when i say little bit, i mean little bit. down three on the dow, nasdaq down a little, five and change. s&p flat. freshry yields moderate. about 2.6 last week, 2.7. >> intel buying mobileye, you can see shares jumping more than 31 increase, still below that deal offer at 6214 the last trade for mobileye shares. intel shares down about 1% this

morning. mobileye, of course, is provider of autonomous driving technology. intel ceo is going to be joining squawk alley this morning. fed concluding with policy decision and janet yellen news conference wednesday afternoon. in global news scattered showers leader says she'll seek authority for new independence vote wants it held between autu autumn. important to know they can actually grant scotland another referendum but can put pressure on them to make it happen. >> another busy week expected on capitol hill. i think from here on out it's going to be busy. the white house will release its budget thursday and republicans will be pushing forward with the american health care plan as well. joining us now on set house majority leader kevin mccarthy. it's great to have you here

close where we can kick this stuff around. good to see you and you look good. >> i'll take that as a compliment. >> that's as good as you're going to get from him. >> what we're hearing is the votes aren't in the senate. in a nut shell, votes aren't in the senate. my question is, can you keep the conservatives in the house on board if you mollify some of these senators that want even more -- the conservatives in the house don't want to give as much as they are giving now. if you have to give more to get votes in the senate, can you keep those guys on board in the house. >> look, i think we're in a good place right now. you've got some from both extremes of the party complaining. so that means you're in a very good place. >> is it just bargaining now, blowing off steam. >> every member wants to legislate. we've been working six year,

everyone giving irn put. as long as the bill is moving people want to make changes through it. i think once we get up through the house, the senate will look at it. i think this bill is going. this is the bill president trump supports. this is fundamental change we're looking at cbo score coming out today. remember what c bflt o score is going to do. this is three phases of changes we're going to make. this is phase one. they are only looking into phase one. they don't take anything into account tom price 14 different elements of power he has in it. they don't take anything into account of what phase three is going to do. we all know why we're here. obamacare has collapsed. obamacare is failing. one-third of the entire country, have one provider. 16 counties in tennessee have no providers next year. you watch prels continue to rise. you saw 23 come opposes given $2 billion, 18 of those collapsed. >> you saw what he said, don't walk the plank.

you're going to vote on this and it's going to the senate. >> there are problems right now with trying to wrangle all these cats. >> i think there's a bigger problem if we do nothing and allow people to continue to suffer. >> i agree. there are some guys who would just like to totally repeal it. it is the genie out of the bottle. there is a new entitlement, it's going to stay? >> how is that a new entitlement? we're repealing taxes, individual mandate, mandate on business, medical device tax. this the bill we sent -- >> tax credits. they used to be subsidies now tax credits. >> if businesses get to write off but individuals do not, that levels playing field. if you're allowing somebody to keep more of their own money and make the decision where to go with health care. to me that's conservative. i don't understand how that's an entitlement? >> look, last november the american people did something nobody bet would have happened.

what's wrong with the democrats today? they still can't believe it happened. but the republicans have to understand it happened, too. i'm not going to sit and argue this piece is good and that piece is bad. but if you don't get your guys in a room and say, guys, this is our moment. the american people will throw you out, too, the next time. they are fed up. they did a very dramatic earth shattering thing. they elected -- i think has the capacity to go down as one of our greatest presidents ever. why? he does things people say can't get done. i'm going to say something not to threaten you but point out a moment in history. one of his campaign promises was term limits. i know what i would do if i were hill and didn't get cooperation from the house and senate, okay, boys, we're going to our nuclear option. i'm going out and saying one of the reasons none of this is

getting done, these guys are worried about getting re-elected. you know and i know election night when you're told you're a winner, you go what do i have to do to get re-elected again. like it or not it is what it is. i don't worry about my job. have you to worry about the job. i'm telling you this is for the republican party not democratic party, get it done. if you don't, american people will speak again. we didn't have one single vote for obamacare. that's good. we said back then it's bad. we shouldn't idot. so our fingerprints aren't on it. nothing is perfect. you're not getting what you want in that bill. get the guys in the room and say, guys, here is your choice. >> do you want to take him with you? these are the exact discussions. >> i'm not going in the room. >> just go and give a little seminar. >> i was just talking to the president in the last week. many times we've talked. this is important. this is also a part of going

into tax reform. why you start with health care, you can repeal all those taxes, which we are doing. that lowers the baseline by a trillion dollars, let's you expand growth even further. if we finish up, we've gone reg reform, health care reform, tax reform, infrastructure, this country will see growth like they haven't seen in quite sometime. >> give us 3.5% gdp growth. all of america's problems for the most part financially, economically go away. >> we can't solve our problems without growth. growth is the underlying factor we need. >> on health care i want to ask you this. aarp says the following. would weaken sustainable dramatically increase health care age 50 to 64 put at risk health care for millions of children and adults, seniors long-term medicaid and supports and other benefits. the other analysis suggests it will cost people about $1542

more a year. >> read that very first line again. it says it's going to weaken medicare. this bill does nothing to medicare. remember what obamacare did, cut that $500 million from medicare. these scare tactics will not work. how does is hurt more choices, humana pulls out, aetna says it's on a death spiral. everybody agrees something has to be done. this audience probably knows better than anybody else, when you bring more competition into the market, what happens? people get greater choice and the price goes down. i'd rather rely on history and the idea of economics of what works and we know it will be better. we're giving people a greater choice when it comes to health care. we do nothing with medicare. if you get your head care from the company, nothing to you. remember, obamacare only did three major things. one, it took greater control and put regulations and restraints from government. it created exchanges which now

have collapsed. only a third of this country has one choice, and it expanded medicaid. what it did around medicaid is now going to cost us within a ten-year window a trillion dollars in one year. put that into perspective. we spend a trillion dollars on all discretionary spending for government. so that's unsustainable. we cannot deny the fact that this has failed and we put a new plan out. this is phase one of three phases so you're going to hear a lot of scare tactics. you're going to hear a lot of things that do not take into effect the entire bill and what's going to happen. >> putting politics aside a health care analyst from jpmorgan this morning. he said if you look at health care stocks, he broke it down into hospital stocks in particular, he thinks we'll be hit pretty hard if this bill goes through. he's giving it a 50/50 shot it will get passed, better odds than markets doing. hospitals will be hurt potentially 15 million people that won't have health care insurance who will still be

showing up to the hospitals and the hospitals will have to pay to help them get healthy. >> access is not care. how many doctor take medicaid and how many specialists take medicaid. >> emergency rooms in the hospital. >> why emergency room when they have more choice, one-third of the counties only have one option. you're going to have greater choice. you're going to be going across state lines and you determine where you go. this is age based, too. this is where i have argument with aarp. the tax credit goes up with age so we're taking care of that. >> in fairness, why do you think the aarp is not supportive of this? you would think they would be trying to support their members. >> on medicare. >> who want to have health care and they think for some reason that they are doing to be worse off not better. >> they don't have any -- there's no way they will go for any type of entitlement reform for medicare or social security, andrew. looking at you're never going to talk aarp into this tough

choice. >> look at the kaiser study that will take a 50-year-old person who lives in my district says better off with this plan. i can give you plan to plan. >> you know we need a means test eventually. >> we all know the simple. >> aarp. >> answer the question. given we're talking about this issue. >> you're confusing your viewer. becky, medicine is moving to more ambulatory care. the most dangerous place in the world to be if you're sick is in a hospital because of in effe effection -- infection. >> younger people will not go for health care coverage because it's expensive. >> talking about hospital stocks. retailer should worry about getting more sales and not this border adjustment tax, the same is true of the hospitals. they have got a bigger problem, becky. more and more -- we do hipaa

nyu, get you out the next morning overnight. >> i'm talking about peel who show up without insurance and have an urgent matter. they are at a hospital. you know this -- >> let me tell you what, let me dispel a notion. not one single hospital in the city ever turned somebody away. come on. you go to a hospital and the kid is bleeding you don't say give me your insurance card, take you care of them. >> you take care of them. debt is piling up because of people who aren't covered that show up. >> i think that's a scare tactic. >> health care slz sanalysis. >> look, it got to be fixed. you guys are living with a perishable commodity, your terms. it's that simple. >> i see what everybody says on

the outside but look where we're going. we have to do reconciliation, we can't write all three phases into one. that's why you're getting study after study that says it doesn't follow all the way through. they can't take into effect the power of tom price as secretary, which in the aca gives him 14 different points of shell, can't take into effect third phase selling across state lines and others. from that point if you look at it overall, this is going to be lowering the price. we're not shooting for status quo, we're shooting for something much better. we're giving people greater choice in their own health care decisions. think about what it's done to business, the mandate, 30 hours, 50 employees or greater. it's put a whole generation having to work two part-time jobs. no one is scoring that in the aarp, are they? >> in terms of the scoring and the way the american public thinks about, this is there a way to talk about and include

phase two and three today. >> we talk about it today. we will move some of the bills that will take 60 votes, which are in phase three, some of those will start moving at the same time we move this on the floor and the weeks after. so you'll start to see those. you should take that into effect. but phase one also has former senator coburn, the byrd rule, which is difficult. we're dealing with these rules in the senate, which is ironic to me those in the senate who want to tell us to slow down and others. because of their rules we can't do all three. >> can i ask a question about the rules? >> yes. >> can a simple majority change the rules? >> in the senate? >> yes. >> with power they can. >> why don't we do it? harry reid did it with federal judgeships, why don't they do it? this is an example of lack of coverage. what are you going to do if the nominee for the supreme court doesn't get confirmed. >> he's going to get confirmed. >> i agree he's going to get confirmed. the next one is going to be the

big fight. the next nominee to the supreme court will be the big fight. change the rules. you have the power. >> i don't have the power. i'm not a senator. >> i'm saying you, the republicans in the senate right now. >> you're looking more senator-like. >> he does look like a good senator. >> i think the senate is like a country club and the house is having breakfast at a truck stop. we're a microcosm. i feel very privileged to serve. i like where i'm at. >> they meet and talk in the senate. they do. we've seen it for years. john kerry perfect senator. you've got 20 guys you can play with in the house, you know, some of them probably not going to go. you've got like two in the senate. does that mean, right, does that mean you've got to move towards the senate and give them some of the stuff they are whining about? >> i look at it like this. the way our country was created, you have two bodies. do the work in the body that you are and make a very great

product and let us send over and have them do whatever work they can do. don't overestimate, we've gone through two committees already and every republican voted for it. in both committees they are a microcosm of our conference from the freedom caucus to study group, every spectrum from most conservative to those that will be on the other side. they all voted for it. it's a good place to be when you have both extremes of the country concerned about a bill. you might have hit just the right place. remember, the president is going to go on the road talking about this bill. i think when he engages the american public it will be different. >> will president trump put pressure on any senators who aren't going to vote on it? do you expect him to go to bat. >> let's move it out of the house. every part of us building and making this country better starts with health care. >> right. >> if we falter here, they are harming the entire agenda going

forward. that should not be the case. your opponents, get it done. >> are you a border adjustment tax guy? >> i'm for overall tax reform. to me the element of the last election is lack of growth in the country. >> are you a border adjustment guy? >> i support border adjustment. >> it's a big one. >> that can get done, too? it's the same problem i see, though. it's like where they are against it. >> this is a legislative process? >> really? >> if i want to have influence on a bill at the very end, i'm going to complain and i'm going to try to negotiate something and that's human nature.

that's what legislators try to do. you're watching the process what we're going through and at the same time they are saying this it's moving through committee and moved through two committees already. now it's going to budget, then it will go to rules next week and come to the floor. you're going to continue to hear this as it goes. >> democrats have an excuse for the last eight years or last six years anyway. they have an excuse because they couldn't get anything -- you've got all three, the presidency and both houses, no excuses. >> this is only the third time world war ii has the public entrusted us with this power. we're not going to waist this. we know it is precious and we're going to represent it. if democrats had super majorities in the senate, they gave us the great society and they gave us obamacare. we don't have 16 in the senate so we have different rules to apply. >> you have one of the greatest opportunities in the world. >> i agree. >> that's donald trump. why? i think this guy is ready to make bold moves. he proved it in the campaign and he won of i see it just like in

business we have disrupters, donald trump is a disrupter and that's what we need to shake government up. he will push us. >> it's a moment in time. don't blow it. >> low in come people face a much larger gap in price credits. older adults face the largest crunch. magnitude of tax credit home run i think so, second provision allows insurers to charge older people substantially higher prices than allowed. >> five to one and three to one. so when we repeal all that obamacare, what that did to obamacare, it priced out the younger people. the younger people didn't join. when you do insurance, it's a group of individuals. you want the people who are younger who don't need it as much. it makes the market better. in obamacare three to one, so it pushed younger people out. that's part of the reason why

the collapse. you're also not taking into effect in my belief there, what does it do to the marketplace. what does it do to business, small businesses, what does it do to moving people out where they have to have two part-time jobs. that created a whole new lower economy with having obamacare. that's all repealed. we're repealing individual mandate. we're repealing three to one. you're going to get greater choice. our tax credit goes up for those who are older because you get more because that's what you need. >> in fairness, you cited the study before. >> the kaiser study, arp, i can take the exact study you're repeating to me saying it's hampling somebody older. i can take a 50-year-old inside my county and it's better for them. so i can pinpoint any part of any study you want to do. let's look at principle. if we bring more health care into the market, if we allow people to make their own decision and we give them a tax credit to do it, i believe

history has shown greater competition across state lines, more choice, the price will go down. >> that may very well be true. i want to point out it's not clear kaiser agrees on that. >> kaiser does agree with a 50-year-old in my district it's better for them. >> for your district but not all. >> my district is probably one of the most diverse districts you can find. >> okay. >> it's not high income. >> okay. fair enough. >> we shall see. what's next. >> legislative process. the key to this is when we get health care fixed -- remember, we're not -- we don't want to compare ourselves to obamacare. we want something better. that has failed. there's a reason why we're at the place where we are. that's in this whole debate people forget that. if we did nothing, what would you end up with? medicaid is not sustainable. it's going to take every discretionary dollar you ask for, so you wipe out all of government. secondly this doesn't do anything with medicare, health care you have in business so the

exchanges. the exchanges are on a spiral. that's not my words, that's the health care. that's not a study. that's what's actually happening today. i'd rather live in reality than what someone sits back -- >> no question a lot of this stuff is unraveling, we've seen big insurers step back. some will step back and say why get rid of taxes, if you kept the taxes and did the changes you're doing you'd be shoring up some of these other areas. >> why get rid of the areas, what has the medical device done to this country? >> i complained that when they put it in. >> you know what else, if we're all sitting, you do it every day on this show, talk about growth in this country. if we're going to solve any problems we've got to get growth up. when you lower taxes you change the baseline of this country as we move forward for tax reform. that's while we'll pivot to tax reform next. if we have pro growth tax reform that comes out you bring jobs back to the country, growth above 3% to 4%.

why is less than 2% the new norm in america? why do we settle for mediocracy when we can be great? all these problems will go away. you know what, when you docthav disruption and change, turn it around like the big aircraft carrier this country is, it's not easy. the future of where we're going is so much better. >> we hire 80,000 people in the spring season part-time. why are they working? because they need the money. >> home depot. >> home depot. 80,000. we already have 36020400,000. these are associates, not contract commission people. the number of part-timers who would like to work more hours, we can't let them work more hours because of obamacare and the 30-hour limit. so what happens? to be safe the store manager says i'm cutting them off at 28. if you've got a great person in the guard be departmearden depas

about flowers, let them work 60 hours. that's when they buy flowers. let them get comfortable he knows what he's talking about, i shouldn't plant in shade, i should put them over here. the point is, this is a bad law. you've got to get out and sell where what you're going to do different. i think most american people don't know what you're talking about. >> it doesn't affect everyone. there's a certain portion of the population obamacare exchanges and medicaid. i sat down with 18 governors, republicans and democrats, in a room with no press talking about moving forward. you know what they all asked me for, flexibility. let us management our population. give us flexibility. that's exactly what this bill does. our states are pilot programs. some of our best ideas come outfit states and governors that are managing. we allow them to do what they need. it's not one size fits all. let the states go out and show what they can have happen.

>> just i want you to tell me right honestly from your heart, what flank are you more worried about, the flank that wants more or the flank that actually wants to cut back? >> more. >> you're worried about the ones that want more? >> yeah. >> so you're worried about the senate. >> you're right. >> i always worry about the senate. >> we all do. >> before we go because i know we're going to talk about it in the next segment, what did you think about preet bharara getting fired or made to resign. >> it gets a lot of press but like every administration why do we have a new cabinet. every administration goes through this. let them carry out their people and put it through. in every administration those on the outside complain about it but it's part of the transition going through. >> quickly before you go. we've heard time tables from members of the cabinet in the past about what they would like to see done. what is your timetable for affordable care -- american care

act and tax reform? when do you expect to see these passed? >> i want this all done by september and infrastructure. i want reg reform, which we're not talking a lot about but is transforming the mind-set of where capital is going. only one time in history have we ever signed into law congressional review act prior to this administration. we already signed three. we passed 14. now we're going to health care, then we'll go to tax, then infrastructure. i think getting all that done in this first year is probably going to be one of the most productive congresses but actually change the country around and we have to have it done. >> all right. >> well done. >> well done. >> i take that as a big compliment. >> you want to know this. the gift i used to give my nephews, just a small working guy, i would buy them one share of home depot. >> great bet. >> that's what i gave them for my birthday. >> i'm 82 and bernie is 87 and

we're out completely and still working like hell for the stockholders for nothing. >> april is your christmas. >> april is our christmas. >> i know that well. it's a great company. >> thank you very much. >> thank you for your time. >> thank you, guys. >> look forward to seeing you later. >> back in d.c., hopefully back on set. meantime we return this morning stocks to watch plus wall street bracing for potential blizzard this week. a report from the weather channel coming up. much more from our guest host always speaking his mind ken langone is going to join us or stick with us on "squawk box" right here on cnbc.

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good morning. welcome back to "squawk box." nasdaq market site in times square. news breaking earlier this morning, big news, intel buying mobileye, worth $15.3 billion the transaction. mobileye a provider of autonomous driving technology. intel's ceo is going to join squawk alley. that's going to happen this morning. you don't want to miss it at

11:40 eastern time. >> some other headlines this morning. yahoo! says board member thomas mcinerney will be its new ceo after it completes sale of internet assets to verizon. former ceo at interactivecorp. at that time will change its name. president trump will meet german chancellor angela merkel in washington tomorrow. the meeting closely watched because of some significant policy disagreements. s.e.c. suggested request from winkle vie for first bitcoin etf. they have been pushing approval for more than three years. s.e.c. said it was concerned about the unregulated nature of the bitcoin markets and whether the etf could be traded effectively. >> among top political stories president trump asking 46 prosecutors to resign and firing preet bharara after he refused to step down.

eamon javers joins us. good morning. >> here is what we know about the time line. administration sent the notice to u.s. attorneys across the country on friday afternoon. there was confusion with preet bharara because he had a deal in november. he met with donald trump, jeff sessions, incoming attorney general. he said he was told that he was going to be asked to stay on. he assumed that was the case until friday. that tension continued into saturday. about 2:30 in the afternoon there was a call with acting deputy attorney general who told preet bharara that order applied to the attorney as well. they went around about whether he was fired. he said am i being fired. he said the notice requires all u.s. attorneys including you. we need you to hand in your

resignation. right after that phone call ended preet bharara took to his new twitter account where he said he was nird. i did not resign. moments ago i was fired. being u.s. attorney in southern district of new york will be the greatest honor of my professional life. then something of a mystery the next day on sunday preet bharara tweeting out this. by the way, now i know what the moreland commission must have felt like. andrew, as you know, in new york state the moreland commission was anti-corruption effort that was shut down by governor cuomo before it could finish its work. some question what preet bharara was suggesting in the tweet. is there information he was working on anti-corruption effort that was shut down before it could be brought to fruition, or what he meant by that. thought sure if it was take dig at cuomo, trump, back to you guys. >> eamon, thank you very much.

when we come back, much more from guest home ken langone. tomorrow on "squawk box," two ark architectures, congressman cech brady and greg walden will join us live 8:30 eastern time. stay tuned. we'll be right back. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. your insurance on time. tap one little bumper,

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welcome back, everybody. our guest host on "squawk box" is ken langone, co-founder of

home depot. ken, we were talking about the border adjustment tax and we didn't get to finish your thoughts on this. >> we talked earlier about how america expects big things out of donald trump. i think donald trump wants to deliver big things to the american people, so you've got a match. there's no way -- if the tax reform is going to be incremental, it means nothing. we can't afford all the things we can do with tax reform unless we can figure a way out to make it happen financially. we can't go to more debt. okay? what i'm saying is, i think if we take a longview, trump will have the financial wherewithal, border adjustment tax will work. it will work for retailers, but they have got to think beyond the next quarter or next six months. you're going to have to be intelligent about how you implement it. in other words, take home depot, give us time to renegotiate contracts with foreign sources. but if you do that -- let's go

back to being americans geb. let's all be patriotic, let's all have skin in the game, let's ask the question how bad is it going to be for me. i know i'm getting old and i know senile but i wouldn't embrace border adjustment tax if i thought it was going to hurt one of my biggest single investments, home depot. i think everybody will win but you've got to give it a chance. we need -- look, i think trump is a moment in time we should take advantage of. i don't care how you felt about the guy, i think the guy wants to do big things. >> what you're talking about with border adjustment tax, brought in gradually retailers think about it, redo currency. that means manufacturers in other countries would be the ones that suffer, make job creation here look better. people would say, forts it, let's do it here. one of the knocks on the border adjustment tax, it would mean the consumer is going to pay

more, particularly low end consumers, they are going to be ones who end up paying for goods when they go to walmart. >> you take the argument they are going to pay more. that means the retailer won't be hurt, going to pass it onto consumer. shouldn't have a problem at all if you're a retailer. home depot would view it, how do we figure out how to manage our business that we don't -- look, the most important thing in the world on this tax revision for me is putting more money in the pockets of our associates and customers. people that have more -- i'm not talking about -- >> you don't think home depot would pass any of this tax onto consumer. >> i would hope not. what i'm saying there's a moment in time, and that time is now, where we all sit down and say let's think of the greater good, think of america. think of this, becky. if i buy a hammer overseas for $20 and i have to price it at $21, let's say but carry at zero

cost, think of the incentive for me finding hammer manufacturing in tennessee or vermont because if i pay $14 there, i can subtract it as a cost. every incentive is there to create jobs in america. >> to change and make us more in line with other oecd countries. >> also because of simple accounting. i buy a hammer in china $20 i have to carry full profit. if i get $20 bucks selling it, it's 100% profit. if i buy it for $14 here, i only show $6 in profit buchlt we all have to think beyond the next quarter. we all have to think about the big pick. i go back to trump again. i think this guy could be destined to make very dramatic change. you know why? because he knows nothing to anybody. the republicans were against him, the democrats, look at the media. the media still hasn't given up. >> let me ask you a different question. >> what? >> manufacturing in america, something you want to bring

back. the critique of that on the other side manufacturing is almost anachronistic, we could bring manufacturing back technically but done by robots and ai. >> a lot of it will be done. >> how skhhould we k about that >> i'd rather have some jobs than no jobs. >>ette way. >> the important thing is to look at the big picture, not be provincial. stan talks passionately about the carried interest and how the carried interest, everybody has hea heard. i feel strongly there's benefits i get that i need. i shouldn't get social security. what is the government doing sending elaine and me money every month? it's nuts. unless we start thinking as americans and all have skin in the game, it isn't going to work. we've done the exact opposite last 50 years, what's mine,

what's mine. we're at a point where we've got to make very tough decisions. >> that's a great point. ken langone, have more in a moment. >> coming up top stories. we'll talk about $15 billion tech deal. stay tuned you're watching "squawk box" on cnbc. ♪ we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley.

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kevin trusted advice for life. kevin, how's your mom? life well planned. see what a raymond james financial advisor can do for you. get down to new york stock exchange. jim cramer joining us. anyone else good at mobileye, they have a lock on it. >> invidious, google makes its

own chips. i think it's kind of big three. i really like this move, brian krzanich told me in st. francis he has to be bigger in autonomous cars. good partnership with bmw and mobileye. a smart move, great quick by a company still viewed as a pc company. >> i think they are going to be able to talk to him at 11:00 something. >> brian krzanich is terrific. he's been trying to reinvent the company. at the same time pcs aren't awful, a lot of cash flow. this is the kind of thing that says this is the future. the number of chips you need in a car, imebbs versus a pc. so it's just great news for intel. >> where are you right now at the storm, jimbo. >> they have got me -- they want me to go to inglewood, they think i can't get to manhattan to inglewood in five hours. maybe jersey turnpike never closes but all these roads that could be a problem. >> they are sending us to new york. we're hiding here.

>> i'll go wherever. i'll go anywhere they want. i brought a suit case and a couple suits. >> jim, how about bucknell? >> west virginia could be something, ken. you know it's possible. they look really good. >> they do look good and they are a great bunch of kids. we're proud of them. they will do the best they can. >> i hear great things about all of them. they are good in school. that's what matters at bucknell. >> who are you leaning towards who will win. it's impossible to pick. >> i am from philadelphia, i love nova, a good team. i saw duke lose two saturdays ago, unc, look awful. they want that tension. >> i know. really good this time. you know, kind of hard to watch. i'm starting to like them. i know people don't like him but he can play. they have some great players. >> yes, they do. very exciting weekend. they almost lost again to seton hall. >> i saw that. i couldn't believe it.

i know. that was amazing. all right. xavier almost beat crayton. same thing last seconds. thanks, jim, we'll see you in a couple minutes. later on squawk alley, don't miss what we were talking about brian krzanich on at 11:40 eastern to talk about this big announced. stay tuned. squawk box will be right back. the power of a low volatility investing approach. the power of smart beta. power your client's portfolio with powershares. before investing, consider the fund's investment objectives, risks, charges and expenses. call 800-983-0903 for the prospectus

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our guest host this morning is ken langone. you have said some -- you shake things up. you're not afraid -- >> i might get shot on the way out of here but, you know. >> that was interesting with leader mccarthy. the stuff you say about president trump. when do you think it becomes less -- i mean, it's -- there are polices where you can go around here. you can't even acknowledge that trump is president without -- >> let me tell you something. when the kids found out i was supporting trump, they picketed the building. that's okay. it's america. however, i told the president, if they deface one brick, one brick, we got a problem. you want to riot, you want to

have signs, this is america, this is a first amendment right, i'm all for it. but let me tell you about trump. i think in this man we have a singular opportunity to get a lot done in this country. remember ronald reagan in '80, "b" movie actor, bozo with -- what was it, bedtime with bozo, whatever the -- look, this guy has got guts. and he's got great people around him. he's got rex, he's got kellyanne, who i love. kellyanne's husband is one of my lawyers. kellyanne is a great asset. he's got the best people in the world around him. >> what about the tweets? >> do you worry about that at all? >> no, because that's where the world is going. i don't read "the new york times" anymore. why? because i can get it on the internet for nothing. >> i'm not asking about the technology. i'm asking about when you wake up in the morning and he makes allegations about russia or goes after arnold schwarzenegger or

whatever it is. >> you know how i view the tweets? what's he going to do today? what's the surprise of the day? this is fun. come on. he's giving us something to get excited about. and let's not blow it. especially the republican party. get it done. because if you don't get it done, you ain't going to be around. take advantage of the freeness of this man's moment. look at the things he did and said in the campaign and he won the election. i can think of three or four different things, oh, my god, that's it, it's all over. he took down the bushes. he took down the clintons. he took down obama. he atlanttook down the republic party. he took down the media. the media hates him and t continues to hate him. you want to know why? because the media is where it belongs, irrelevant. >> financial news -- >> well, i'm on the media and i'm taking advantage of my opportunity to say you can fool some of the american people some of the time and you can fool all

of them some of the time but you can't fool all of them all of the time. that's the genius of america. all of us need to remember this is the greatest country on earth and we all have to have skin in the game and that's me and frank and bernie and everybody else. if we don't have this country, we ain't got nothing. >> what do you think of the markets these days? we haven't even -- >> hell i know. i don't sell scotttocks. now it's back up to 80 something. stocks go up, stocks go down. look, america's the greatest country on earth. our economy is -- we own the next 25 years. if we get some of these basic things done, trust me, we own the next 25 years as a nation. and that's where we want to be. >> you look at the betsy devos stuff -- >> i love her. >> i know, but look at this country now. do you think -- do we need the real -- the people that are totally anti-everything? do we need to bring them in? will that ever heal? >> it would be nice if they

could look beyond their own selfish interests. look, chuck schumer, i have a great affection for what he did for me at the medical center. chuck schumer needs to take a step back and say wait a minute, how do i show my constituents and the american people that at the end of the day i want the best for america? if the idea comes from the other side, i'll embrace it. that's all. >> anyway, thank you. >> thank you, thanks for having me. >> make sure you join us tomorrow, squawk on the street begins right now. good monday morning. welcome to squawk on the street. at the new york stock exchange. we kick off a big week today. a fed decision. a white house budget. a cbo score on health care and a lot more. futures are pretty tight as the s&p broke that six-week winning streak. prime minister may could hit the button on article 5